Key financial results

Financial sustainability

An increase in the production and sales volume of petroleum products, including via premium sales channels, led to growth in sales.

Results in 2014:

↑11.09% growth in revenue

↑1.74% growth in adjusted EBITDA

Revenue, bn RUB
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Revenue growth of 11.09% was achieved through growth in production and an increase in sales, primarily through premium channels.

EBITDA includes the share of EBITDA of associated and jointly controlled.EBITDA, bn RUB
Zoom Source: Company data

The lag in the export duty limited the growth in EBITDA to 1.74%.

Key financial indicators, mn RUB
2013 2014 Change, %
Sales revenue
Sales 1,504,037 1,690,557 12.4
Minus: Includes the excise tax calculated based on the volume of petroleum products sold by the Serbian subsidiary.export duties and excise taxes −236,434 −282,319 19.4
Total sales revenue 1,267,603 1,408,238 11.1
Expenses and other costs
Acquisition cost of oil, gas and petroleum products −319,051 −382,505 19.9
Production and operating expenses −144,552 −171,711 18.8
Selling, general business and administrative expenses −72,005 −86,318 19.9
Transportation expenses −107,837 −116,125 7.7
Depreciation, depletion and amortisation −76,785 −85,951 11.9
Taxes, except profit tax −316,070 −343,576 8.7
Expenses on geological exploration work −2,876 −936 −67.5
Total operating expenses −1,039,176 −1,187,122 14.2
Other expenses −6,310 −8,471 34.2
Operating profit 222,117 212,645 −4.3
Share of (loss) / profit of associated and joint venture companies 11,251 −6,306 −
Net foreign exchange loss −2,166 −52,265 2,313.0
Financial income 6,011 7,075 17.7
Financial expenses −11,233 −15,279 36.0
EBITDA is an additional financial indicator that is not defined by IFRS.Adjusted EBITDA 336,752 342,614 1.7
RUB/TOE 5,408.8 5,171.5 −4.4
Converted into USD at average exchange rate for period.USD>/BOE 23.1 18.3 −21.0
Adjusted EBITDA margin 26.57% 24.33% −2.2 p.p.
TOTAL OTHER (EXPENSES) / INCOME 3,863 −66,775 −
(LOSS) / PROFIT BEFORE TAX 225,980 145,870 −35.5
Income / (expense) on current profit tax −34,823 −17,518 −49.7
Income / (expense) on deferred profit tax −4,437 −1,696 −61.8
TOTAL INCOME / (EXPENSE) ON PROFIT TAX −39,260 −19,214 −51.1
(LOSS) / PROFIT FOR PERIOD 186,720 126,656 −32.2
Minus: profit attributable to non-controlling interest −8,803 −4,563 −48.2
(LOSS) / PROFIT ATTRIBUTABLE TO OJSC GAZPROM NEFT SHAREHOLDERS 177,917 122,093 −31.4
Net profit margin 14.73% 8.99% −5.7 p.p.
NET DEBT 185,922 433,602 133.2
Source: Company data Zoom Download XLS

An increase in the production and sales volume of petroleum products, including via premium sales channels, as well as growth in oil and petroleum product prices on the domestic market led to a 12.4% increase in sales in the reporting year.

The 1.7% increase in adjusted EBITDA was held back by the negative influence of the temporary lag in export duties (delayed effect of duties). The negative effect of exchange rate differences as a result of the revaluation of loans and borrowings led to a 31.4% decrease in profit attributable to shareholders of OJSC Gazprom Neft in the reporting year.

Net debt expanded by 133.2% from 185.9 bn to 433.6 bn RUB.